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Before closing this, my tenth annual report, it might be of interest to compare|the increase of the work in this Department during the last ten years by quoting for your consideration the following figures: —

The number of service certificates that have been issued do not appear in this list. The numbers against each class represent only the candidates actually examined and who obtained certificates. The classes marked with an asterisk represent new classes of examination which have come into force by Act during the last ten years. In the last ten years the boiler-inspections have doubled hi number, the machinery-inspections have increased 8,400 per cent., and the examination-work has increased 1,200 per cent., besides the creation of a great number of classes of examinations which the above table shows. AH correspondence in connection with these examinations, the issue of all boiler certificates, and the work connected with the Postal, Police, and Audit Departments, in relation to these certificates, is performed at the Head Office. This work at one time was done by each Inspector issuing the certificates within his own district, but is now done by the clerical staff, as efficiently, and at less cost. The issue of all certificates and the centralising of the greater part of the clerical work at the Head Office has given each Inspector quite two additional clear months in each year to engage in the practical part of his duties. During the last ten years 38,976 boiler-inspections, and 2,517 steamer-surveys have been made, and only one boiler-explosion has occurred during the whole of that time, causing the death of the attendant. It was proved that the attendant had mistaken the water-level in the gauge-glass, and had allowed the water-level in the boiler to get too low, thereby causing overheating of the furnace, which resulted in the explosion. This explosion occurred on 4th March, 1897, at Waikanae. The above figures show what good practical work is being done by this Department. Returns. Appended are the returns in detail, numbered 1 to 21 : — 1. Number and class of boilers inspected, and fees payable on these ; the machinery inspected, and the fees payable thereon ; and the classes and numbers of engine-drivers' certificates issued, and the fees payable therefor. 2. Return of defects found on inspection of boilers. 3. Return of notices given to repair boilers. 4. Return of notices given to fence dangerous parts of machinery. i ; t ; 5. Return of accidents which were not fatal. 6. Return of accidents which proved fatal. 7. 8, 9, 10, 11, 12, 13, 14, and 15. Names of all persons to whom land stationary, winding, locomotive, and traction certificates of competency and service have been granted during the year. 16. List of persons who were examined for marine engineers' certificates of service and competency. 17. Return as to steamers and oil-engined vessels surveyed during the year. 18. Return as to sailing-vessels surveyed during the year. 19. Return of vessels surveyed for seaworthiness, &c, during the year. 20. Return showing sums earned or received and amount spent during the financial year for inspection of machinery, examination of engineers and engine-drivers, and survey of steamers and sailingvessels. 21. Return showing the names of owners of boilers which require to be in charge of certificated drivers. I have, &c, Robert Duncan, Chief Inspector of Machinery, Principal Engineer Surveyor of Steamers, and Chief Examiner of Marine Engineers and Land Engine-drivers. The Hon. the Minister of Marine.

Boilers inspected Machinery inspected Steamers surveyed Sailing-ships surveyed 1890. .. 2,944 33 207 1905. 5,119 2,770 316 1C Examinations and Certificates issued — First-class marine engineers Second-class „ *.. *Third-class ,, River engineers Marine-engine drivers *First-class oil-powered vessel engineers *Second-class ,, *Restricted limits engineers *Extra first-class shore engineers *First-class engine-drivers *Second-class ,, Winding-engine drivers Traction and locomotive engine drivers ... 2 .. ; 7 .. 32 6 55 12 12 74 31 19 2 13 6 7 234 518 28 273 Total examinations .. 102 1,229